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Benjamin K. Olson and Daniel P. Stipano Quoted in Bloomberg BNA Article, “Banking Regulators Engage in Unusually Public Spat”

Bloomberg BNA

Benjamin K. Olson, Daniel P. Stipano

Benjamin K. Olson and Daniel P. Stipano were quoted on July 17, 2017 in a Bloomberg BNA article, “Banking Regulators Engage in Unusually Public Spat,” which discussed the disagreement between Consumer Financial Protection Bureau Director Richard Cordray and acting Office of the Comptroller of the Currency agency head Keith Noreika following the CFPB’s issue of the arbitration rule banning the use of mandatory arbitration contract clauses. The article stated, “Noreika wrote Cordray July 10 to voice concern about the ‘potentially ruinous liability’ the CFPB’s rule could have on banks due to increased litigation costs. The OCC acting director also suggested a joint approach to the rule that he said would help avoid safety and soundness concerns. That sparked a July 12 response by Cordray, who said he was surprised to receive Noreika’s letter because the OCC hadn’t voiced any previous concerns about the regulation during more than two years of development. Cordray said there was “no basis” for Norieka’s claims and that CFPB staff could brief the OCC on the rule.”

Stipano noted, “As more appointments to the agencies are filled, collectively these new appointees are going to have a different perspective on safety and soundness and consumer protection issues than their predecessors did. Once the new team is in place, there will be a real shift in direction among the agencies, and this is the start of it.”

Olson believes timing and other factors are at play here, adding, “The acting Comptroller came in at the end of this process. He’s only been in the role for two months, so this is the first time he has had the opportunity to raise these questions. It’s neither shocking nor unprecedented that the head of a prudential banking regulator is raising concerns about safety and soundness in relation to a consumer protection rule.”

Click here to read the full article at bna.com.